October 15 Sales of existing homes in Canada slipped in September from August, hurt by declines in Toronto, Vancouver and Calgary, a report from the Canadian Real Estate Association showed on Thursday.
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A drop of 2.1% was recorded with the association saying sales through its Multiple Listing Service were down in more than half of all local markets, led by lower sales in Toronto, Vancouver and Calgary. A total of 3,427 homes were sold in the month, which is a decrease of 3.8% compared with 3,563 units sold in August.
But across Canada the average sale price increased by 6.1 per cent to $433,649.
Actual (not seasonally adjusted) activity edged up 0.7% compared to September 2014.
The report, released on Thursday, said the decline in Calgary was compared to a record set a year ago. Greater Vancouver (+13.72 per cent) and Greater Toronto (+10.46 per cent) continue to post by far the biggest year-over-year price increases.
“The story for the GVA and GTA is that continued strong demand for a limited supply of detached properties is sending prices through the roof as worldwide migrants, young millennials and an apparent influx of foreign wealth flock to these two areas”, Guatieri said.
The number of newly listed homes slipped 2.1 per cent from August to September, while the national sales-to-new listings ratio was 56.8 per cent in September.
Sal Guatieri, senior economist with BMO Capital Markets, said Canada’s housing market is cooling somewhat. A sales-to-new listings ratio of 40-60% is generally consistent with balanced housing market conditions. Of the remainder, most over 60% were nearly entirely in British Columbia and around the GTA.
Year-over-year price growth picked up in September for all home types tracked by the index.
As has been the case for a while, activity in Toronto and Vancouver is skewing the average higher, CREA said.
For the second consecutive month, prices in Calgary were flat year-over-year, said CREA.
Prices rose around 1.5% in Greater Montreal and 2.5% in Greater Moncton. The national aggregate, of 12 markets, was up 6.9 per cent to $504,800.
Prices are likely to come down by Friday morning thanks to wholesale gasoline dropping about six cents a litre.
The average home sale price in Vancouver was $857,272, which is down 4.3% compared with August.
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The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 109,000 REALTORS® working through a few 90 real estate Boards and Associations.
